Does the 1-800-GOT-JUNK? General Security Agreement specify any requirements for the Debtor to maintain insurance on the Collateral?
1_800_Got_Junk Franchise · 2025 FDDAnswer from 2025 FDD Document
INSURANCE 15.1 Minimum Insurance. Franchisee shall maintain in full force and effect during the Term and any Renewal Term, at its sole expense, such insurance coverages as Franchisor, in Franchisor’s sole discretion, may from time to time require, including, but not limited to: (a) commercial general liability and property damage insurance, including personal and bodily injury liability, contractual liability, and owners’ and contractors’ protective insurance coverage with respect to the activities conducted by Franchisee and any employee, agent 4908-1371-6037.2 Franchise Agreement 4/22 or other person performing work on behalf of Franchisee with respect to the Franchised Location or the Franchised Business, with a policy limit of not less than $2,000,000 per
Source: Item 22 — Contracts (FDD page 24)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document for 1-800-GOT-JUNK? does not specify within the General Security Agreement any requirements for the Debtor to maintain insurance on the Collateral. However, the Franchise Agreement does address insurance requirements.
According to the franchise agreement, 1-800-GOT-JUNK? requires franchisees to maintain certain insurance coverages during the term of the agreement and any renewal term. The specific types and amounts of insurance are determined by 1-800-GOT-JUNK?'s discretion and may change over time.
Specifically, franchisees must maintain commercial general liability and property damage insurance, including personal and bodily injury liability, contractual liability, and owners’ and contractors’ protective insurance coverage. This insurance must cover activities conducted by the franchisee and anyone working on their behalf concerning the Franchised Location or Business, with a policy limit of at least $2,000,000 per occurrence.
Prospective 1-800-GOT-JUNK? franchisees should carefully review the insurance requirements outlined in the Franchise Agreement and discuss with the franchisor to understand the specific coverages and limits required, as well as any potential changes to these requirements over time. Franchisees must also ensure they can obtain and maintain the required insurance at their sole expense.